Suburban Vacancies Increase

A Knight Frank survey showed that suburban office vacancy rate in Melbourne is on the rise. From January to September of this year, the figure slightly increased from 5.7 percent to 5.8 percent.

Investors, however, are ramping up to focus on quality and fully leased assets.

According to Colliers International, vacancy rate from March to September 2012 increased from 6.2 percent to 7.1 percent. The two firms said there was a vacancy increase in all metropolitan precincts.

Colliers said that Dandenong has the lowest vacancy rate with Clayton being the highest. The firm added that southeast’s vacancy rate dropped because of no new supply.

Richard Jenkins said some office hubs are doing better compared to others. Carlton’s vacancy rate dropped from 2.9 percent to 0.8 percent. Hawthorn’s vacancy rate, meanwhile, decreased from 3.2 percent to 2.5 percent.

Mulgrave is also doing better as its vacancy rate dropped from 11 percent to 10.2 percent. Jenkins is the research director of Knight Frank.

Amita Mehortra, meanwhile, said that demands from tenant remain consistent. In the same manner, lease renewal activity is consistently strong. Mehrotra is a research analyst from Colliers International.

On the investment side, Colliers national director for investment services and office leasing Rob Joyes said that private investors are the main buyers over the last half a year. At least 12 transactions were registered from March to September 2012, totaling about $151 million.